3. SUMMARY
Carlos Ghosan, COO of Nissan
Identification of problems
Carlos Ghosan Management Philosophy
Ghosn form Cross Functional Teams
Layoffs and plant closures
4. SUMMARY (CONT…)
Nissan Revival Plan (NRP)
• Keiretsu partnerships
• Reorganization
• Performance Evaluations and Employee Advancement
Implementation of “Nissan 180”
5. NISSAN’S STRUGGLE
Focus on production rather than customers
Weak product portfolio
JAPANESE MARKET
Keiretsu Investment
Employee Advancement
Risk- averse attitude
6. NATIONAL CULTURAL ISSUES
Consensus decision making
Informal meetings (NEMAWASHI)
Promotion for most knowledgeable & experience (NENNKOU-JYORETU)
Finger pointing rather than acceptance
Japanese business tradition
7. CORPORATE ISSUES
Follow up was not effective
Communication and coordination problems
Product oriented
Lack of vision
Lack of urgency
12. FEELING OF NISSAN PEOPLE ABOUT CARLOS
GHOSN
Respect for their culture
Opportunities & career development
Give credit of all success
Accept & participate in management process
Embrace new ideas
13. ENLISTING EMPOYEES SUPPORT
Walk around in entire company
Met every employee & shaking hands
Discussions for new ideas
Address issues of lower & middle management to top level management
Take recommendations & opinions of Nissan people
14. RESISTANCE TO CHANGE
The main resistance is the culture background under this there are several
resistance:
Promotion on seniority Basis
Risk averse
Protecting career development
No coordination between departments
Problem with other department
No tradition of Bankruptcy
Difference in words and work
15. TO RESOLVE RESISTANCE
Highest achievers got the highest rewards
Performance based promotion
Address issues about communication among employees
Involvement of employees in decision making process
Setting up Cross Functional Teams
16. CULTURE & NISSAN
Part of the culture was one of sub optimization with
focus only on each individual’s own department with
little regard for or understanding of the whole.
Inconsistency
Deviations
Problems
17. IMPACT OF CULTURE AT NISSAN
PROBLEMS
From management side:
• Lack of vision
• Ignoring customers
Further more, Ghosn identifies:
• Lack of profit orientation.
• Lack of sense of urgency.
• No shared vision.
• Lack of Cross functional implementations.
18. SOLUTIONS TO NISSAN’S CULTURE
PROBLEM
What they have did?
– CFTs (cross functional teams)
What we suggests?
– Open communication
– Horizontal to vertical hierarchy
– Informal meetings